MOU Signed Between Gasco & Tecnicas Reunidas for Methane ProjectSource: www.gulfoilandgas.com 2/20/2016, Location: Egypt
Eng. Tarek El-Molla, Minister of Petroleum and Mineral Resources, and Mr. Arturo Avello, the Spanish Ambassador in Cairo, witnessed the signing of a Memorandum of Understanding between the Egyptian Natural Gas Company (GASCO) and Spanish company Tecnicas Reunidas, one of the largest international companies specializing in engineering design and construction of oil and gas projects.
The MOU is for the preparation of a technical and economic feasibility study and the provision of finance offers for the second phase of the enhanced methane recovery project at the Western Desert Gas Complex (WDGC). The project aims to maximize the production of ethane/propane mixture, which forms the basis for the production of ethylene and polyethylene in the petrochemical industry, thus contributing to securing feedstock and raw material for new and existing petrochemical projects.
The Memorandum was signed by Eng. Karem Mahmoud, Chairman of GASCO and Mr. Ricardo Sanchez Galindo, Commercial Director of Tecnicas Reunidas. The signing took place in the presence of Eng. Mohamed Taher, First Undersecretary of the Ministry of Petroleum for Petroleum Affairs, Eng. Khaled Abdel Badie, Head of Egyptian Natural Gas Holding Company (EGAS), and Eng. Mohamed Safaan, President and Chairman of Egyptian Petrochemicals Holding Company (ECHEM).
The MOU is part of an agreement signed between the governments of Egypt and Spain for investment and support of development projects in Egypt, and this project represents actual interpretation of the strategy for the oil sector for the maximization of added value and economic exploitation of natural resources.
Eng. Karem Mahmoud, Chairman of GASCO, pointed out that this project is part of a series of projects currently being implemented at the Western Desert Gas Complex (WDGC) and the LPG Recovery Plant at El-Amereya, ensuring operation at maximum capacity and raising production efficiency and contributing to the provision of liquid natural gas derivatives and securing current and future needs of petrochemical industry projects of Sidi Kerir Petrochemicals Company (SIDPEC) and Egyptian Petrochemicals Company (EPC) in addition to The Egyptian Ethylene & Derivatives Company (ETHYDCO) project.
Eng. Karem Mahmoud explained that the foundation design of the project, which has an initial investment of $600 million, has been set and that it will enable a 30% increase in production of ethane/propane mixture, equivalent to 350 thousand tons per year. Eng. Karem Mahmoud added that the first phase of the project is currently being implemented with an investment of approximately $ 17 million and is planned to start operation by next June, increasing production of ethane/propane mixture by about 200 tons per day.
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